Arcus Biosciences Inc (RCUS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 117,000 | 112,000 | 382,882 | 77,517 | 15,000 |
| Property, plant and equipment | US$ in thousands | 51,000 | 35,000 | 32,000 | 10,807 | 9,330 |
| Fixed asset turnover | 2.29 | 3.20 | 11.97 | 7.17 | 1.61 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $117,000K ÷ $51,000K
= 2.29
Arcus Biosciences Inc's fixed asset turnover has shown varying trends over the past five years. The ratio decreased from 3.20 in 2019 to 1.61 in 2020, indicating a decline in the efficiency of generating revenue from fixed assets. However, there was a significant improvement in 2021 when the fixed asset turnover ratio surged to 11.80, suggesting a substantial increase in revenue generated from fixed assets.
In 2022, the ratio decreased to 7.17, but it still remained significantly higher than the levels seen in 2019 and 2020, reflecting continued efficiency in utilizing fixed assets to generate revenue. In 2023, the fixed asset turnover ratio decreased further to 2.29, signaling a decline in the efficiency of utilizing fixed assets to generate revenue compared to the previous year.
The fluctuation in the fixed asset turnover ratio could be due to changes in the company's operational efficiency, asset utilization, or changes in the business model. It would be important for Arcus Biosciences Inc to further analyze the drivers behind these changes and take appropriate actions to improve the efficiency of utilizing fixed assets to generate revenue in the future.
Peer comparison
Dec 31, 2023